Suppose that Dent Carr's long-run total cost of repairing s cars per week is c(s)= 3s² + 75.If the price he receives for repairing a car is $36, then in the long run, how many cars will he fix per week if he maximize profits?

Question

Quizplus · Accepted Answer

To maximize profits, Dent Carr will choose the quantity of cars to repair (s) where marginal cost (MC) equals marginal revenue (MR). Given the price per car repair is $36, MR is $36. The long-run total cost function is given as $c(s) = 3s^2 + 75$. To find MC, we differentiate c(s) with respect to s, which gives $MC = 6s$. Setting MC equal to MR, we have $6s = 36$, solving for s gives $s = 6$. Therefore, to maximize profits, Dent Carr will fix 6 cars per week.

Suppose That Dent Carr's Long-Run Total Cost of Repairing S